Reciprocity within major retail purchase channels and their effects on overall, offline and online loyalty

Abstract

Although online stores drive offline stores and vice versa, knowledge of these reciprocal effects is still scarce. The authors analyze whether reciprocal effects between images of major purchase channels exist and how they affect consumers’ loyalty. Importantly, they differentiate cross-channel loyalty. Study 1 analyzes longitudinal data from 573 consumer evaluations of leading omni-channel fashion retailers using cross-lagged panel models. The results indicate that a positive offline channel image enhances the online channel image and vice versa. The reciprocal effects of offline (vs. online) images are stronger on overall retailer, offline channel and, surprisingly, online channel loyalty. Moreover, the effects change for retailers with which consumers have more or less favorable prior offline and online experiences. Study 2 tests identical relationships based on 380 consumer evaluations and reveals possible shortcomings of a typical cross-sectional design. The findings have direct implications for managers interested in understanding how reciprocity and prior experience affect consumer behavior.